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Landlords fail to claim tax allowance on energy improvements

Richard Mannion, National Tax director at Smith & Williamson, the accountancy and financial services group, said: "There has been a low level of claims submitted under the Landlord’s Energy Saving Allowance (LESA) despite the availability of the allowance being extended from private landlords to corporate landlords in summer 2008.

"Making energy-efficient improvements to a property will reduce the cost of energy bills as well as maximise the tax savings available under LESA. It’s a win-win situation for landlords. In addition to saving themselves money, they’ll save their tenants money and do something good for the environment."

LESA is a tax allowance, not a grant. However, landlords can’t claim if they are already claiming an allowance under the Rent-a-Room scheme, or if they have a property rented out as furnished holiday accommodation, or if the energy-saving item is installed in the course of construction.

Landlords can claim LESA on expenditure incurred up to 1 April 2015, when the availability of this allowance will end.
Landlords can claim back up to £1500 for each dwelling house (so this can include each residential flat within a block of flats).

Examples of the kind of improvements which qualify include:

* Draught proofing;
* Loft insulation;
* Floor insulation;
* Cavity wall insulation;
* Solid wall insulation;
* Insulation for hot water systems.

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